3 Taylor’s Scientific Management

Tejinder Sharma

1.0 Learning Outcomes

After studying this module, you shall be able to

• Know the meaning, nature and significance of Principles of Management.

• Understand Taylor‟s principles and techniques of Scientific Management.

2.0 Historical Background of Scientific Management

In early 20th century the management concepts and theories were in the process of evolution and development. During this age of evolution it was strongly felt to make the optimum utilization of sources of production, e.g., men, materials and machinery. This concept of optimal utilization made even the technical persons like engineers, gang boss and machine operators to think of more meaningful and systematic ways and means to work. This process of thinking led to the origin of a new branch of management known as : Scientific Management”.

The concept of scientific management was introduced by Fredetick Taylor in USA in beginning of 20th Century. This concept was further carried on by Frank and Lillian Gilbreth, Henry Gantt, George Berth, Edward Felen, etc. F.W, Taylor, the father of scientific management, was born in 1856 in USA. He initially joined Midvale Steel Works as an apprentice and reached to the level of Chief Engineer. Taylor was a keen observer. During his working he observed that machine functions need to be performed in more systematic, organized and methodical ways. He conducted several experiments on working methods, styles of functioning and was of the view that the haphazard and unsystematic methods to avoid waste of time, machine hours and material.

F.W. Taylor (1856-1915)

3.0 Definition and Concept of Scientific Management

The term scientific management is the combination of two words i.e. scientific and management. The word “Scientific” means systematic analytical and objective approach while “management” means getting things done through others. In simple words Scientific Management means application of principles and methods of science in the field of management.

 According to F.W. Taylor, “Scientific Management is the substitution of exact scientific investigations and knowledge for the old individual judgment or opinion in all matters relating to the work done in the shop.”

According to Peter F.Drucker,“The core of scientific management is the organized study of work and the analysis of work into its simplest elements and the systematic improvement of the worker’s performance of each element.”

These definitions describe scientific management as application of scientific knowledge replacing the old or traditional methods of doing work.

4.0 Purpose of Scientific Management

In the times when the concepts of scientific management were evolving, it was supposed to serve the following purposes:

1. Increased Production: Standardization and systematization of methods, procedures , tools contribute increasing production.

2. Standardization of methods: Development of one best way to perform any job leads to standardization of methods.

3. Reduced waste and losses: Systematic and Scientific production methods and techniques reduce waste and loss of materials.

4. Improvement of quality control: Quality standards are sought to be adhered to by inspection, research and quality control measures.

5. Cost Reduction: cost is tried to be reduced by adopting cost control techniques.

6. Appropriate placement: It aims at best possible placement, i.e. right person is put on the right job.

7. Wage Incentive: Wages are to be incentive oriented, i.e. production linked.

8. It displaces custom, guess work, and arbitrary exaction. It defends the worker against soldiering and sloth (shirking work or lazing-away), or over speeding and fatigue.

9.Ensuring a regular supply of goods to the consumers at reasonable prices.

5.0 Features of Scientific Management

a) Approach: It is a systematic, analytical and objective approach to solve industrial problems.

b) Economy: The basis of scientific management is economy. For implementing economy, all the unnecessary elements of production are eliminated and a sincere effort is made to achieve optimum production at the minimum cost.

c) A Definite plan: The main characteristic of scientific management is that before starting and work there must be a definite plan before as and the work is to be done strictly according to that plan.

d) Discards old methods: It discards the age old methods of rule of thumb and hit or miss approach.

e) Emphasis: It lays emphasis on all factors of production, men, material and technology.

f) Techniques: It implies scientific techniques in methods of work, recruitment, selection and training of workers.

g) Attempts: It attempts to develop each man to his greatest efficiency and prosperities.

h) Method: It attempts to discover the best method of doing a work at the cheapest cost.

i) A definite Aim: It is another main characteristic of scientific management. Scientific management is the process of organizing, directing, conducting and controlling human activities. Hence there must be a definite aim before the managers, so that the human activities be organized directed conducted and controlled for achieving that aim or aims.

j) Changes in attitude: It involves a complete change in the mental attitude of workers as well as the management.

k) A Set of Rules: There must be a set of rules in accordance with the laid plan so that the objectives can be achieved. According to F.W. Taylor, It is no single element but rather the whole combination that constitutes the scientific management.

6.0 Principles of Scientific Management

1. Science not Rule of Thumb: Rule of Thumb‟ means the application of traditional methods or the methods decided by the manager based on his past experience. All these methods are often untested and unscientific; they do not guarantee a specific result or outcome. In an organization, the rule of thumb can be seen as „the dictatorship of the manager‟ which should be avoided.In this principle, Taylor states that there must be thinking before doing i.e. „Trial and Error Method‟ or „Hit and Miss Method‟ should be avoided, instead scientific and researched methods should be adopted for performing any activity.
In this principle the emphasis is on scientific decision making based on cause and effect and the scientific measurements of the methods.

Positive impacts of this principle:

i. Standardized results;

ii. Guarantee a specific result or outcome;

iii. Objectives can be achieved in a better way;

iv. Better utilization of available resources, skills and budget.

Example: According to Taylor, even a small production activity like loading pigs of iron into boxcars can be scientifically planned and managed. This can result in tremendous saving of human energy as well as wastage of time and materials.

2.Harmony, Not Discord: In every organization there are two groups of people i.e. “workers‟ and „management‟ and both always feel dissatisfied with each other. Workers always feel that they are overburdened and are underpaid. Management always feels that workers are good for nothing and are paid unnecessarily. In this principle, Taylor emphasized that the interests of employers and employees do not clash. It seeks to harmonize the objectives of both sides. Group harmony suggests that thre should be mutual give and take situation and proper understanding so that group as a whole contributes to the maximum.

Positive impacts of this principle:

i. Change of attitude of both groups towards each other.

ii. A cordial relationship can be developed between workers and management. Iii. Goals of the organization can be easily achieved.

iv. Each activity can be done in a better manner.

v. Development of team spirit.

vi. High morale of employees.

Vii. Cooperation and coordination in the organization.

Example: Japanese work culture is a classic example of such a principle. In Japenese companies, paternalistic style of management is in practice. There is complete openness between the management and workers.

3. Cooperation, Not Individualism: Cooperation’ means acting jointly, or a union towards achieving the same result. This principle states that the work should be done in cooperation and with mutual confidence. Employees and management should co-operate with each other. Competition should be replaced by cooperation.

Positive impacts of this principle:

i. Development of team spirit.

ii. High morale of employees.

iii. Cooperation and coordination in the organization.

iv. Goals of the organization can be easily achieved.

4. Development of each and every person to his or her greatest efficiency and prosperity:

Scientific management provides that the right person be placed at the right job. Besides it provides for the selection of persons to be made as per job requirements. It seeks to assess the physical, psychological, educational requirements of a job and match them with the capabilities of candidates.

Positive impacts of this principle:

i. Scientifically trained workers.

ii. Work satisfaction.

Iii. Understanding the nature of the job.

iv. Workers produce more and earn more.

5. Maximum output not restricted output: Maximum output means increased profits and reduced costs. Scientific management involves continuous increase in production and productivity instead of restricted production either by management or by workers. Taylor hated inefficiency and deliberate curtailment of production.

7.0 Techniques of Scientific Management

A. Functional Foremanship: In the factory system, the foreman represents the managerial figure with whom the workers are in face-to-face contact on a daily basis. Separation of planning from doing resulted into development of supervision system which could take planning work adequately besides keeping supervision on workers. For this purpose, Taylor evolved the concept of functional foremanship based on specialization of functions. Functional Foremanship is the extension of the principle of division of work and specialization to the shop floor. Each worker will have to take orders from these eight foremen in the related process or functions of production.

Taylor has suggested the division of the work of factory manager into two sub departments:

(i) Planning department, and

(ii) Production department.

Four experts are appointed in each department. The experts in the planning department do planning and the experts in the production department help in production.

(i) Specialists of Planning Department and their Functions

(a) Route Clerk:

This clerk ensures the sequence of completing a particular work, meaning thereby the stages it shall have to pass before being finalized. He also decides the job to be done for the day and where it is to be done.

(b) Instruction Card Clerk:

This clerk prepares the instruction cards for the workers and hands them over to the gang boss. These cards contain information about the nature of the work, procedure of doing it, material to be used and the details about machinery.

(c) Time and Cost Clerk:
 This clerk decides as to when a particular work is to be started and finished, meaning thereby as to what time the whole work will take place. It is also decided at the same time at what cost the product will be produced.

(d) Discipline Officer:

The discipline officer ensures that every work is being performed in a disciplined manner.

(ii) Specialists of Production Department and their Functions

(a) Gang Boss:

The workers are divided into various groups from the point of view of control. A group leader is selected who is known as the gang boss. He is expected to ensure that both the workers and the machines are fit enough for production and that the material required for their use has been made available to them.

(b) Speed Boss:

The main function of the speed boss is to ensure that all the workers are performing their job at the required or expected speed. If it is not so, the speed boss tries to find out the cause of slow speed and hence a solution for it.

(c) Repair Boss:

The main function of the repair boss is to keep the machines and tools in working condition.

(d) Inspector:

He inspects the things produced and compares their quality with the standard prescribed for them and tries to find out the difference. In case of unfavorable result he initiates corrective action.

B. Standardization and Simplification of work: Standardization refers to the process of setting standards for every business activity. It can be standardization of process, raw material, time, product, machinery, methods or working conditions. These standards are the benchmarks which must be adhered to during production. The objectives of standardization are:

i) to reduce a given line or product to fixed types, sizes and characteristics.

ii) to establish interchange ability of manufactured parts and products.

iii) to establish standards of excellence and quality in materials.

iv) to establish standards of performance of men and machines.

Simplification aims at eliminating superfluous varieties, sizes and dimensions while standardization implies devising new varieties instead of the existing ones.

• It results in savings of cost of labour, machines and tools.

• It implies reduced inventories.

• It results in fuller utilization of equipment.

• It increases the turnover.

Examples: Large companies like Nokia, Toyota and Microsoft etc. have successfully implemented standardization and simplification.

C. Work Study: This is also called scientific study. Work study means an objective and systematic observation of each step or operation of a work. Work study tries to minutely observe each process and part thereof to decide if the work is performed in a systematic and scientific manner or not. Following are the techniques of work study:

i). Method Study: Method study aims at minimizing the cost of production by using a better, optimal mix of resources. It seeks to decide the best method of doing a job. It helps in reducing the transportation, storage, handling cost of raw materials and goods.

Figure-An overview of Work Study

It is an analysis of ways of doing work. The mnemonic SREDIM (a common-sense heuristic or general problem-solving strategy) represents the method study stages:

1. Select the tasks to study

2. Record the facts about it

3. Examine these

4. Develop a new method

5. install/implement it

6. Maintain it.

ii) Motion Study: Motion study refers to the study of movements like lifting, putting objects, sitting and changing positions etc. which are undertaken while doing a typical job. Unnecessary movements are sought to be eliminated so that it takes less time to complete the job efficiently.

iii) Time Study: It determines the standard time taken to perform a well-defined job. Time measuring devices are used for each element of task. The standard time is fixed for the whole of the task by taking several readings. The method of time study will depend upon the volume and frequency of the task, the cycle time of the operation and time measurement costs. The objective of time study is to determine the number of workers to be employed, frame suitable incentive schemes and determine labour costs.

iv) Fatigue Study: it is generally caused by long working hours. It emphasis on:

• The frequency of rest intervals.
• The duration of rest intervals
• The number of rest intervals.

This study aims at providing proper rest interval to the employees to increase the effectiveness of the work. Fatigue study seeks to determine the amount and frequency of rest intervals in completing a task. For example, normally in a plant, work takes place in three shifts of 8 hours each. Even in a single shift a worker has to be given some rest interval to take her/his lunch etc. If the work involves heavy manual labour then small pauses have to be frequently given to the worker so that she/he can recharge her/his energy level for optimum contribution.

D. Differential Piece Wage System: F.W. Taylor started this method as a part of the scheme of scientific management. The underlying principle of this system is to reward an efficient worker and penalize the inefficient person. In Taylor‟s system, inefficient persons have no place in his organization.

The main features of this system are:

1. Minimum wages are not guaranteed in this plan.

2. A standard time fixed for taking completing the task.

3. Different rates are fixed for taking standard time or more.

4. Higher rate is given if work is completed in standard or less time and lower rate is offered if more than standard time is taken.

For Example: It is determined that standard output per worker per day is 10 units and those who made standard or more than standard will get Rs.50 per unit and those below will get Rs.40 per unit. Now an efficient worker making 11 units will get 11×50=Rs.550 per day whereas a worker who makes 9 units will get 9×40= Rs. 360 per day.

Difference between Motion and Time Study

Basis	Motion Study	Time Study
Nature	It studies motion or movements of workers.	It studies time taken to perform each part of work.
Purpose	It aims at reducing wasteful movements of workers	It aims at reducing wasteful time in performing any work.
Objective	It tries to develop the best work performance method	It tries to standardize the time for each part of any work.

8.0 Benefits of Scientific Management

A. Benefits to Workers

1. Improved working conditions: Scientific management lays emphasis on improving actual working conditions, e.g., ventilation, lighting, working space, work hours etc.

2. Better training: Scientific selection helps to improve the standard of training. Training is designed to enable a person to suit the job requirements. It advocates scientific training for employees.

3. Productivity linked wages: Differential piece rate means better wages for better performer. The higher the performances the better are the wages. It helps the workers to improve their efficiency.

4. Improved relations: Cooperation and mutual coordination helps better relations amongst management and workers and also within workers.

B. Benefits to Society

1. Improved standard of living: Scientific management aims at higher profits which in turn lead to better wages. The process in turn thus helps to improve the standard of living of                  workers.

2. General economic prosperity: The mental revolution develops better coordination and productivity. Profitability is also improved. Standard of living of worker is also improved. It thus helps to improve general prosperity.

3. Economic prosperity: Industrial peace and welfare- cooperation, mutual trust, confidence help in augmenting peace and welfare in industry.

4. Better education level: Adoption of scientific and systematic techniques makes workmen aware and conscious of latest methods and techniques. This awareness helps to motivate worker‟s inclination for formal education.

9.0 Criticism of Scientific Management

Criticism of Scientific Management can be summarized as under:

A. Grievances of workers:

i. Ignores human aspect: Workers strongly oppose scientific management as it completely ignores human feelings, personnel relations, etc.

ii. Monotony: Standardized works, methods and techniques leave no scope for individual initiative. This all add to monotony.

iii. Exploitation: Treating workmen as machines leads to exploitation of workers.

iv. Discourages trade union: Scientific methods discourage trade unions.

B. Grievances of Employees:

i. Cost: Application of scientific methods involve cost to an organization. All organizations may not be prepared for this extra cost.

ii. Flexibility: Scientific methods are least flexible and assume that these are the only best ways to perform.

C. Grievances of Public:

i. Disregards human beings: Treatment of human beings as economic being is the highest criticism of scientific management.

ii. Treating, planning and implementation as distinct function is one of the limitations of scientific management ignoring the interrelation and interdependence of these two vital managerial functions.

iii. No “one best way” the concept of “one best way” is not universally applicable. One ways which is regarded as best in one situation may not fit in other situation.

10.0 Summary

The Principles of Taylor’s Scientific Management Theory became widely practiced, and the resulting cooperation between workers and managers eventually developed into the teamwork we enjoy today. While Taylorism in a pure sense isn’t practiced much today, scientific management did provide many significant contributions to the advancement of management practice. It introduced systematic selection and training procedures, it provided a way to study workplace efficiency, and it encouraged the idea of systematic organizational design.